Austin’s Evolution into Tech Hub and its Effect on the Office Commercial Real Estate

[Neil Narayan]

2024 Trends to Watch:

• - Smaller leases (1,000-15,000 square feet) make up the majority of transactions and movement in 2023.
• - Tech companies are increasingly starting to call employees back to the office in a hybrid capacity.
• - Home to over 3,000 tech companies and a host of accelerators and incubators, Austin is quickly developing a reputation as a key player in the US AI startup scene.
• - According to Built in Austin, defense technology appears to be the leading area of interest for venture capital investors on the Austin tech scene. In October and November, the two largest funding rounds went to local tech companies operating in the defense space. On the heels of defense, construction technology and logistics technology companies secured the next highest amounts of funding.
• - As semiconductor, electric vehicle and other advanced manufacturing companies flock to central Texas, companies in adjacent high-tech industries are piquing interest in Austin.

Austin is one of the most dynamic and exciting technology hubs in the world. Fueled by a robust education system, a supportive business environment, and an enviable quality of life, Austin continues to magnetize companies and is poised to lead tech innovation for years to come.